so very true, so very profitable. I love slow motion. slow motion is good. the market is going in slow motion but you are in full speed. less mistakes, more control, more profits. This is one of the big reasons I switched from eminis to NYSE. When you are used to very fast pace action, it becomes a major edge in the slow motion NYSE. also true, I think it is pretty difficult to trade NYSE and Naz at the same time. I think Gene is so right on that too. tntneo
I am glad you are having success trading NYSE stocks - trading with a time frame of 1 hour or more I can see where you may prefer NYSE stocks. But believe me - I get their game - and can make money trading NYSE stocks - but for my style which is basket trading the market waves and trading news - there is no comparison that nasdaq is better for me. You say specialists must make a fair market - I have been trading for 5 years - over 400,000 shares a day, and some of the specialist fills are simply criminal - and I dont buy up movement or sell down moves --after 2 years of trading my adps on nasdaq was +.04 and for nyse stocks it was only +.02 --- that told me something. For me, Nasdaq is clearly better - but I know if you think like a specialist and act like a specialists - you can beat them at their own game --even if they do lie, rob, cheat & steal.
I agree with your comments Gene -- how is NYSE direct ??? and how are you able to track its use - I thought the 1099 shares was limited to the whole firm -- so if one person in the firm enters an order on nyse direct for 1000 shares -- a second person in that same firm could not use an NYSE direct order for that same stock for a certain amount of time ?
Huh? It sounds like you are using market orders? Otherwise, how could a fill be anything but what you stated by a limit order? If you are using market orders to trade NYSE, I can see why you would think the specialists are cheats, etc. IMHO, market orders should be used on very specific strategies on NYSE (see prae above, and there are others.) I know the strategy of using market orders (used to) work well on NASDAQ, especially with size - but on "day to day stuff," not on NYSE!! nitro
Think about the way the specialist opens a stock. Before the open, there are a bunch of buys and a bunch of sells that have accumulated overnight. Imagine what the specialist sees when he comes in the morning the day after BMY's announcement. He has _MILLIONS_ of shares to sell (everyone is screaming get me out!) and perhaps a few hundred thousand buys. Well, in the absence of a buyer at a particular price, he tries to see if he can entice more buyers to come in at a lower price. Remember, if there is no one on the other side of a huge imbalance, they either halt the stock, or the specialist has to take the other side of the trade, or both. So, he keeps lowering the price, calling around to find out where there is buying interest. At some point, either he has enough buy orders to meet the crazed selling supply, or he must be on the other side of some of those sell orders himself. So, if his neck is going to be on the line for 2M shares, where do you think he is going to open the stock? You got it! Some price such that if the stock turns on him, he knows there is buying interest below. (reverse what I am saying in the case of a buy imbalance.) Another possibility, depending on when prae bought it, is that he was simply watching the tape and saw a huge amount of stock going off at, say 30, and the _BID_STAYED_THERE_, ergo, someone (read, a FUND with lots of money) is gulping down this stock - it will take anything you want to give it at these levels. (BTW - it's funny to see what happens when daytraders notice something as obvious as this - it becomes mayhem to try to get in front of each other - that is why prae used market orders.) These are the catastrophes that traders look for. It takes experience, cojones the size of water melons (to trade that much size,) and a good bottle of rum (hey, they don't all go your way) - But rest assured, if the specialist opened the stock at 29.90 or whatever it was, and he didn't even need to delay the open too much (notice that the stock opened at about 9:40, EST) your money is in good hands. nice trade prae - nitro
News is one of my favorite types of plays. There are some conditions though before it can be easily done. Trade with the specialist. Also remember the NYSE rule. The Specialist can never buy on an uptick or sell on a downtick. He must always be going against order flow. Robert Tharp
I had no idea that there was 5m there. Just a dumb guess. But there must have been something there cause it was trading 30 X 30.2 for like 30 mins. It just wouldn't go under. So there has to have been something there holding it up. Main reason I bought was reading TSCM. Cramer liked it down here. IF he did, probably other funds would have liked it too. I hadn't been watching the tape before the trade. I turned it on, and fired in my first 5k before I even looked at the charts. When I saw the chart, I started firing off size. I was really hung over that morning cause it was my GF's b-day the night before and I didn't get in til 3 hours before the open. I hadn't read the news and didn't know what was happening. I had about 10 pages of notes on the BMY specialist, so as I started to go through them really fast, I knew exactly what was happening. I just started firing off 5k orders at market (i only use market) as i read the notes and saw that this jived with his buy notes. I just scaled out as it got up honestly. I told the whole et room that it was going to 32 that day. But i took way less than that as 30k was too much not to lock in as a gain. Go to our room on et, I post all my trades in real time for everyone as do about a half dozen other very high quality traders.